The confidence of major European powers in Morocco is the result of years of progress in the Kingdom's trade, customs and fiscal policies aimed at broadening the focus of its investments. The country's socio-economic development strategy places a strong emphasis on attracting foreign investment. The nation relies on foreign investment to increase employment and diversify the economy. Despite the growing tussle over trade and investment, the French foreign ministry stresses that Paris remains an important economic partner for Rabat.
French investment in the Kingdom continues to decline. After being the most influential economy in Moroccan trade, the United States overtook France as Morocco's largest economic partner last year, after more than a decade of leadership. With an investment of $578 million in the first half of 2022, Washington put an end to French dominance, according to data from the country's foreign trade watchdog, the Exchange Office (EO).
According to a report published by EY Spain's Strategy and Transactions team on 11 May, Morocco is currently the leading African investor in France, which remains the continent's top destination for foreign direct investment. According to the EY report, by the end of 2022, Moroccan investments had supported 682 jobs and 12 French companies.
Despite the recent deterioration of relations between Morocco and France, Moroccan investors increased employment in France by 60% over the previous year. France, which had ranked first as a foreign investor in Morocco's economy for more than ten years, fell to second place in the first half of 2022 when the United States overtook it.
Proof of this is the increase of nearly 5 billion dirhams. From Dh1.5bn ($214m) at the end of 2007 to Dh6.3bn ($578m), US foreign direct investment in the Alawi nation has risen steadily over the past ten years in just the first half of 2022, according to OE data. The Bureau de Change's annual report includes a balance of payments that describes Morocco's international trade. It uses data up to March.
While the European Union is currently the North African nation's largest trading partner, France has historically been Morocco's main trading partner. However, the Moroccan administration has been actively working to diversify its international partner base in recent years.
Although political tensions have distanced their agendas in recent months, bilateral trade between Paris and Rabat is on the right track. According to information released by the French Embassy in Rabat, the volume of trade between their economies increased on the Moroccan side to 24% in 2022 compared to the previous year, reaching €13.4 billion.
Developments in the Moroccan economy are making the North African nation the 'client' of choice for European nations. Due to the favourable relations Morocco enjoys with the European Union as a result of the latter's advanced candidate status, the Kingdom is becoming a major partner in economic exchanges, laying the groundwork for its eventual development as an "international trade hub" according to Mohamed Yousfi, director general of the Moroccan Agency for the Development of Logistics (AMDL).
